Welcome to Simple Dietz Performance Screen
We have improved Simple Fund 360 Investment Reporting for Planners and Investment advisers by adding a new Simple Dietz Method to the Investment Dashboard. The new method provides a more weighted measure when calculating the return on a portfolio than a simple return method.
The Simple Dietz method measures investment performance during a period, incorporating cash inflows and outflows.
The Simple Dietz method is named after Peter O. Dietz, author of 'Pension Funds: Measuring Investment Performance'.
Navigation
From the Main Toolbar, go to Investments. | |
Select Investment dashboards from the list. |
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Quickly adjust the date range for the Simple Dietz Screen.
Users can also manually specify a date range and Export to PDF.
The Rate of Return Explained
Important: Simple Fund 360 has expanded on the Simple Dietz formula to be able to apply it to a range of investment types, whether it be unitised or non-unitised. Below are detailed examples of the exact calculations used and how simple fund 360 applies them.
Formula used for Non-Unitised investments/Bank Accounts:
Formula for Unitised investments:
Definition Table
Notation | Definition | Notes |
The beginning of the period | If there are no holdings at the beginning of the start date selected, t1 will be the date of the first purchase. | |
The end of the period | If there are no holdings at the end of the end date selected, t2 will be the date of the last disposal. | |
Opening Market Value | The market value of the asset(s) as at the beginning of the selected period. | |
Closing Market Value | The market value of the asset(s) as at the end of the selected period. | |
Net cash flow on a specific day i |
Include any purchases, disposals, instalments, returns of capital and dividend/distribution reinvestments.
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Income on a specific day i |
The income amount is the amount of cash flow from the income received including any tax credits associated with the income.
It is assumed any income will reduce the market price of investment. |
Example Case:
Example 1: Non-Unitised investments/Bank Accounts
Formula used for Non-Unitised investments/Bank Accounts:
The time period selected is 01/07/2017 – 31/12/2017.
Example 1.1: Non-Unitised Asset 1 is purchased on the first day 01/07/2017 for 5000 and is not disposed of. No other purchases for this investment are made in this period. $100 of income is made on the investment.
The beginning of the period | 01/07/2017 | |
The end of the period | 31/12/2017 | |
Opening Value | 0 (Note that Mt1 is the market value of all assets at the beginning of t1. The investment is purchased on t1 so Mt1 = 0) | |
Net cash flow on the first day | 5000 | |
Averaged net cash flow excluding the first day and last day | 0 | |
Income for the full period | 100 |
Example 1.2: Non-Unitised Security 2 is purchased on 15/07/2017 for $1000 and is fully disposed on 15/08/2017. No other purchases for this investment are made in this period. $100 of income is made on the investment.
The beginning of the period | 15/07/2017 (Note: If there is no holding and balance of a specific investment/bank at the start or end date of the selected period, Simple Fund 360 will calculate the rate of return of the period from the first purchase) | |
The end of the period | 15/08/2017 (Note: If the investment is disposed of in the period, Simple Fund 360 will calculate the rate of return of the period until the last disposal date) | |
Opening Value | 0 | |
Net cash flow on the first day | 1000 | |
Averaged net cash flow excluding the first day and last day | 0 | |
Income for the full period | 100 |
If the holding period of the investment is not the same as the selected period, users can hover over the investment to see which period Simple Fund 360 has applied to calculate the rate of return. |
Example 1.3: To calculate the return for the whole control account 72400, Simple fund 360 looks at all transactions within the control account during the selected period and treats them as one single investment. Therefore, on the control account level:
The beginning of the period | 01/07/2017 | |
The end of the period | 31/12/2017 | |
Opening Value | 0 | |
Net cash flow on the first day | 5000 | |
Averaged net cash flow excluding the first day and last day | 1000 – 1000 = 0 | |
Income for the full period | 100 + 100 = 200 |
Example 1.4: The opening balance for the bank account was -$2900. A purchase was made on 01/07/2017 for $5000. Other transactions to the bank account totalled $1199. Interest income for the bank account was $0.
The beginning of the period | 01/07/2017 | |
The end of the period | 31/12/2017 | |
Opening Value |
-2,900 |
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Net cash flow on the first day | -5,000 | |
Averaged net cash flow excluding the first day and last day | 0.5 * 1199 | |
Income for the full period | 0 |
Example 2: Unitised Investments
Formula for Unitised investments:
The time period selected is 01/07/2017 – 31/12/2017
Example 2.1: NAB was purchased on 01/08/2017. 100 units were purchased at $2500. No other purchases for this investment are made in this period. $141.43 of total income is made on the investment (dividend + franking credit).
The beginning of the period | 01/08/2017 | |
The end of the period | 31/12/2017 | |
Opening Value | 0 | |
Closing Value | 2,957 (As there is no price available on 31/12/2017, the next nearest prices is used. $29.57 per share as at 29/12/2017) | |
Net cash flow on the first day | 2,500 | |
Net cash flow less Income for the full period* |
2500 - 141.43 | |
Averaged net cash flow less income, excluding the first day and last day* |
0.5 * (0 - 141.43) | |
Income | 141.43 (dividend + franking credit) |
*Note: As it is assumed any income will reduce the market price of investment, NCF is reduced by Income in these calculations.
If the latest security price of the investment is not the same as the end period date, users can hover over the closing value to see which price Simple Fund 360 has applied. |
Example 2.2: The fund held WBC shares coming into the selected time period. No other purchases for this investment are made in this period. No income is made on the investment. The investment is disposed of on 01/12/2017 where the proceeds of the disposal were $3400.
The beginning of the period | 01/07/2017 | |
The end of the period | 01/12/2017 | |
Opening Value | 3,051 | |
Closing Value | 0 | |
Net cash flow on the first day | 0 | |
Net cash flow less Income for the full period* |
-3,400 | |
Averaged net cash flow less income, excluding the first day and last day* |
0 | |
Income | 0 |
*Note: As it is assumed any income will reduce the market price of investment, NCF is reduced by Income in these calculations.
Example 2.3: Rate of Return for control account 77600.
The beginning of the period | 01/07/2017 | |
The end of the period | 31/12/2017 | |
Opening Value | 3,051 (market value of 100 units of WBC shares) | |
Closing Value | 2,957 | |
Net cash flow on the first day | 0 | |
Net cash flow less Income for the full period* |
-900 - 141.43 | |
Averaged net cash flow less income, excluding the first day and last day* |
0.5 * (-900 - 141.43) | |
Income | 141.43 |
*Note: As it is assumed any income will reduce the market price of investment, NCF is reduced by Income in these calculations.
Example 3: Portfolio Return
To calculate the Portfolio return, Simple Fund 360 uses the formulas used to determine each control account's return and sums up numerator and denominator of each formula.
Bank Account 60400 (Example 1.4):
Numerator | 0 |
Denominator | 2530.29 |
Fixed Interest Securities 72400 (Example 1.3):
Numerator | 200 |
Denominator | 5000 |
Shares in Listed Companies 77600 (Example 2.3):
Numerator | 0 |
Denominator | -7300.5 |
Viewing Investment Performance
Quickly review the balances and performance across all investment classes with Simple Fund 360's interactive data visualisation charts.
Ensure that the balance of investments are within the investment strategy of your funds by effortlessly viewing all movements for your investments for any given time frame
The data source for the chart visualisations is simply the table found underneath the charts, so any filters applied to the table will be reflected in the displayed visualisation.
To view more details for an investment category, hover your mouse over the chart segment to display the full account name, account balance and weighting percentage.
Easily compare the contributions of each investment class towards by the fund's performance by viewing the Income and Market Gain bar chart.
Earnings and losses will be displayed next to each investment class, displaying the exact contribution the investment class contributed towards the fund's performance.
Investment Performance Simple Dietz report
Clients now have the ability to view the Dashboard in the form of a report. The report can be downloaded in the form of a PDF and printed. The report can be accessed from the reports screen.